Surviving in the crypto world is not just a slogan,

It’s a survival rule based on mathematics.

Many newcomers enter the market with the goal of “I want to make 100x,”

But for traders, the goal every day when they wake up is: “I want to make sure my principal is still there today.”

As Buffett said,

Rule No.1: Never lose money.
Rule No.2: Never forget rule No.1.
(Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.)

This doesn’t mean you’ll never lose a cent, but rather that you should never suffer a “devastating blow.”

Why is protecting your principal so important? Because losses and gains are asymmetric.
This is the famous “death spiral” in trading:

When you lose a certain percentage, you need a multiple increase to break even.

Lose 10% ➔, you need an 11% gain to break even (Not hard)
Lose 20% ➔, you need a 25% gain to break even (Manageable)
Lose 50% ➔, you need a 100% gain to break even (Very hard!)
Lose 90% ➔, you need a 900% gain to break even (Almost impossible)

Losses and gains are asymmetric.
When your account is halved (-50%), mathematically you already have one foot in the grave. Because in crypto, losing half can take just a few days, but doubling often requires catching the main bull run.

Trading is a game of Texas Hold’em with infinite rounds.

Chips = your life.

As long as you have chips, you can keep sitting at the table, waiting for that Royal Flush.

Once you go all-in and lose it all, even if Bitcoin goes to $1,000,000, it has nothing to do with you.

Admitting mistakes is the hardest part of trading. If your system tells you the trend is broken, you have to get out no matter how much you’ve lost. If you still have 40% left, you still have a shot at a comeback; if you hit zero, your only option is to become a delivery person.